Recruitment can be costly and time-consuming for businesses, especially those with limited resources. Traditional recruitment methods often involve paying a percentage commission to recruitment agencies, which can quickly escalate costs. Flat-fee recruitment is a solution that can provide significant benefits for businesses.
This article will explore flat-fee recruitment, its benefits, pricing structure, and who can benefit from it. We will also provide an example of flat-fee recruitment and how it can help businesses reduce recruitment costs while maintaining candidate quality.
Flat-Fee Recruitment
Flat-fee recruitment, also known as fixed-fee or flat-rate recruitment, is a recruitment service where the recruiter charges a fixed price for their services, regardless of the number of hires made or the salary of the hired candidates. This differs from traditional recruitment services that typically charge a percentage of the hired candidate’s salary or a variable fee based on the number of hires made.
Flat-fee recruitment can be cost-effective for businesses looking to make multiple hires or have a limited recruitment budget. It can also be a convenient option for companies that want to outsource the recruitment process to a third-party provider without worrying about the cost of each hire.
Why Is Flat-Fee Recruitment Better?
There are several benefits to flat-fee recruitment:
- Cost-effective: Flat-fee recruitment can be a cost-effective solution for businesses looking to fill multiple job openings or those wanting to keep their recruitment costs low. It can help companies save money compared to traditional recruitment methods, where fees are based on a percentage of the employee’s salary.
- Time-saving: Flat-fee recruitment allows businesses to quickly access a pool of pre-qualified candidates, reducing the time and resources needed to find suitable candidates. This can significantly benefit small businesses or those with limited HR resources.
- Flexibility: Flat-fee recruitment allows businesses to choose the level of service they require, whether a basic package or a more comprehensive solution. This will enable companies to tailor their recruitment strategy to their specific needs.
- Increased control: With flat-fee recruitment, businesses have more control over recruitment. They can be involved in the screening and selecting of candidates and have a say in who is ultimately hired. This can help businesses find the right candidate for the job.
- Wide reach: Many flat-fee recruitment providers use a range of online channels and job boards for advertising positions. You can reach a wider pool of candidates than you would through traditional recruitment methods.
- Predictability: Since the fee is fixed, there are no surprises regarding the recruitment cost. This makes it easier for businesses to manage their finances and allocate resources more effectively.
How Does It Work?
Flat-fee recruitment can be broken down into four simple steps:
- Optimise: Collaborate with your service provider to create an eye-catching job advert tailored to attract suitable candidates, ensuring it’s optimised before posting.
- Advertise: Post the job opening on various job boards for up to 28 days, with options to use branded advertising, premium job boards, or sector-specific boards based on your preferences and budget.
- Review: Use an Applicant Tracking System to manage incoming applications easily, shortlist candidates for interviews, and access additional features like psychometric testing, candidate scoring, and video interviews, depending on your chosen package.
- Hire: Select candidates for interviews, take advantage of premium options like candidate vetting or telephone interviews, and manage the offer process, with the option to receive support from the service provider. Benefit from building a database of potential candidates for future roles as well.
Pricing Structure: Flat-Fee vs Traditional Recruitment
Traditional recruitment is usually done through recruitment agencies or headhunters who charge a percentage of the candidate’s first-year salary as a commission for their services. This means the cost of recruitment can be very high, especially for companies looking to fill high-level positions. Additionally, there may be additional fees for advertising the job, conducting background checks, and other services.
On the other hand, flat-fee recruitment offers a fixed fee for recruiting a candidate regardless of salary or position. This means the cost of recruitment is predictable and more affordable. Flat-fee recruitment typically includes advertising the job, screening and shortlisting candidates, and arranging interviews.
One of the most significant benefits of flat-fee recruitment is cost savings. With traditional recruitment, the cost can quickly escalate as the percentage commission is calculated based on the candidate’s salary. Flat-fee recruitment provides a transparent pricing structure, making it easier for businesses to budget and plan their recruitment costs.
While traditional recruitment has its advantages, flat-fee recruitment offers cost savings, flexibility, and greater control over the recruitment process. Flat-fee recruitment pricing is predictable and affordable, making it a popular choice for businesses of all sizes.
Flat-fee Recruitment Example
The traditional model of charging a percentage fee is removed from the equation regarding flat-fee recruitment. For instance, with a conventional recruiting model, a salary of £40,000 with a 20% fee would result in an £8,000 fee. However, the amount can vary depending on the position’s compensation.
The percentage is removed from the equation with a flat fee, and a fixed price is assigned regardless of the position’s salary. The cost is predetermined before the search begins, ranging from £299 or more. This fee is then paid to the recruiter regardless of the outcome of the search or the person’s salary.
Frequently, with a fixed-fee campaign, you can recruit more than one candidate at no additional expense. This approach becomes even more cost-effective if you’re hiring in bulk or have multiple similar positions to fill.
Who Can Benefit From Flat-Fee Recruitment?
Flat-fee recruitment can benefit companies of all sizes and industries. It allows companies to reduce hiring costs without compromising candidate quality by offering low-cost, fixed-price recruitment packages. Flat-fee recruitment is 90-95% cheaper than traditional recruitment methods. There are no hidden costs or contracts — just one upfront fee.
Interested in enjoying the many benefits of flat-fee recruitment? If so, get in touch with us today.
